Panama City just flipped the script, accepting crypto for public tax payments starting around April 15, 2025. Yeah, that’s right—taxes, fees, even parking tickets in Bitcoin, Ethereum, USDC, and USDT. Mayor Mizrachi Matalon is hyping this as a game-changer, a bold middle finger to tradition. It’s all legal, with a bank converting crypto to USD instantly. Modern? Sure. Crazy? Maybe. Stick around to uncover the wild details behind this move.
While some cities are still figuring out how to spell “blockchain,” Panama City just leapt ahead, approving crypto for public service payments around April 15-16, 2025. Yeah, that’s right. While others are stuck in the Stone Age of finance, this city council voted to let folks pay taxes, fees, permits, fines, even parking tickets with digital cash.
Mayor Mayer Mizrachi Matalon couldn’t wait to brag about it on X. And honestly, who can blame him? Panama City just became a regional pioneer, one of the first globally to pull this off at a municipal level. Talk about a flex. This move marks a significant step in government crypto adoption.
Now, don’t expect to pay with some obscure meme coin. They’re starting with the big dogs—Bitcoin (BTC), Ethereum (ETH), and stablecoins like USD Coin (USDC) and Tether (USDT). Safe bets, widely used, no weird experiments. Yet. No word on expanding the list, so don’t hold your breath for your favorite altcoin. They’re playing it smart, sticking to the heavy hitters for now. Gotta crawl before you walk, right? This initiative also aims to position Panama City as a forward-thinking hub in the digital finance landscape. As consumer banking habits evolve, this move aligns perfectly with the global shift toward digital financial solutions.
Here’s the kicker, though. Panama’s national law says government transactions must be in USD, the legal tender. So, how’d they dodge that? A slick partnership with a local bank. Crypto comes in, gets instantly flipped to dollars, and the city only sees USD. Boom. Legal compliance, no drama.
No new national laws needed either, unlike past crypto bills that got stuck or vetoed since 2022. A new draft bill from March or April 2025 is floating around to regulate crypto nationally, but Panama City didn’t wait for that mess to sort itself out.
Why do this? Simple. Modernize, innovate, lead. They want decentralized payment options for citizens, a “free flow of crypto” in the local economy. Plus, convenience for crypto holders, maybe even financial inclusion for the unbanked. Lower transaction costs? Possible. Attracting investment and talent? Heck yeah.
Panama City’s the first public institution in the country to take this leap, joining global outliers like Colorado and Lugano. Unlike El Salvador’s forced Bitcoin experiment, this is optional. Will citizens bite? That’s the million-dollar—or million-Bitcoin—question. Time will tell.
